S&P 500 makes another high
The S&P 500 closed at another all-time high today. It is now up +4.3% over 1 trailing month. Certainly, seems to be closing the year strong. For 2021 it is up +27.61% so far with 2 more trading days to go in the year. (Yes, the stock markets are open Friday).
I am long SPXL since 12/16/2021 which is the day after the 10-day moving average of the S&P 500 crossed over the 20-day moving average. My acquisition price is 137.31 so I have a gain of +6.11% as of now. Here is how the SPXL chart looks like right now:
Notice it is up +12.6% over 1 trailing month. I like the moving averages setup as of now and the RSI at 61 is also reasonable.
I am also long TECL which is the 3x leverage of the technology sector. My acquisition price for TECL is 84.07 so I have a gain of +6.17% on that as well. Here is the TECL chart:
It looks very similar to the SPXL. Note that it is up +16.5% over 1 trailing month. Unlike the SPXL the TECL never really turned bearish. The 10-day and the 20-day just intertwined for a bit.
The VIX was finally got down to just around 17 which is a lot better than where it was about 3 weeks back. The markets are indicating strength. Even the Russell 2000 which has been weak finally closed positive today.
Also, from the chart above we can see that the 10-day moving average just crossed over the 20-day for the Russell 2000. This is a good sign and potentially there is some catchup that happens to the rest of the market. I do see that the 50-day moving average still hovers well over the 10-day and the 20-day. So, I will stay away from TNA but maybe play some IWM options.
There are other sectors that look attractive again and I will likely nibble on them. I am looking at the Semiconductors with SOXL and Homebuilders / Real Estate with NAIL and DRN.